A governance agreement is necessary for practices with two physicians or 200 physicians. Here are the seven essentials of one.
A governance agreement forms the foundation of how a practice's board of directors is comprised, how it makes decisions and operates, and how it maintains authority. An effective agreement can get a practice through a partner disagreement, financial crisis, legal issue, or natural disaster. It's a critical document no matter if your group has two or 200 physicians.Most practice governance agreements fall short on detail. Often they contain just the legal statements about board size and voting that are required to file the organization's corporate documents. Add strength to yours by making sure it includes these seven essentials.Click here to download a PDF of this slideshow.Karen Zupko is president of KarenZupko & Associates, Inc., a practice management consulting and education firm that helps physicians increase revenue, optimize efficiency, reduce risk, and improve the patient experience. Her firm has worked with physicians for more than 30 years. Michael R. Marks, MD, MBA is a senior KZA consultant with extensive leadership experience; as president of an orthopaedic group and as a hospital administrator in charge of a large, employed physician group. He provides advice on improving provider communication skills and enhancing patient safety. Â